NSDL and CDSL Demat Accounts

NSDL and CDSL Demat Accounts.

What is a Demat account?

A Demat Account is an account that allows investors to hold their shares in an electronic form.

Why should you have a Demat Account?

As it is difficult to hold shares in physical forms because it involves a lot of paperwork, long process and risk of fake shares. So, for simple and seamless trading and investing, Demat account is must to trade in India’s stock exchanges.

Depository Participant (DP).

A depository (in simple terms) is an institution holding a pool of pre-verified shares held in electronic mode that offers efficient settlement of transactions.

What Is The Difference Between NSDL And CDSL?

There are two Depositories in India – the National Securities Depository NSDL, promoted by the National Stock Exchange NSE and the Central Depository Services CDSL promoted by BSE

There is unlikely to be much difference between the CDSL and the NSDL, though investors can check with their broker before opening either a demat account.